Question: Problem - Solving: Based on the given information, answer the following questions. You constructed a portfolio consisting of the following stocks: Expected Return Beta $
ProblemSolving: Based on the given information, answer the following questions.
You constructed a portfolio consisting of the following stocks:
Expected Return Beta $ amount invested
Stock A $
Stock B $
Stock C $
The expected return of your portfolio is rounded to two decimal places
The portfolio beta is Rounded to two decimal places
Given your answer to question is your portfolio riskier than the market portfolio? choose between "more" or "less"
Suppose CAPM also predicts the expected return of your portfolio is the same value as in question Given your portfolio beta and a riskfree rate of what would be the market risk premium?
rounded to two decimal places
Assume Mona has a retirement fund, and it has exactly the same annual return as the expected return of your portfolio. She has been making a deposit of $ at the end of each month into this account for years. How much will she have in this retirement fund now?
$ Rounded to the nearest cent
Bonus: points
You plan to visit friends in Asia years later. The trip is expected to cost $ at that time. Your parents are helping you by depositing $ today in a Certificate of Deposit, paying interest annually, maturing years from now. Uncle Joe has agreed to pay for all remaining expenses. If you put Uncle Joe's gift in an investment fund earning today for the next years, how much must he deposit today so that you reach your goal of $ at the end of year
$ Rounded to the nearest cent
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